TaxTMI 
TaxTMI 
ITC- can we claim or not?
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....TC- can we claim or not?<br> Query (Issue) Started By: - Ramanathan Seshan Dated:- 4-4-2025 Last Reply Date:- 9-4-2025 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Dear Experts, * Can we claim ITC for repairs made to a corporate office situated within the factory premises? What if the corporate office is located at a separate site from the factory, is ITC still claimable? * Is ITC claimable for the service involved in tree cutting for road construction and warehouse development? * Can ITC be claimed for a rented motor vehicle (including two-wheelers) used by a salesperson for marketing purposes? * Is ITC claimable for the laying and repair of a bitumen road within the factory premises? Regards, S Ram Reply By....
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.... YAGAY andSUN: The Reply: 1. ITC for Repairs to Corporate Office Situated Within the Factory Premises Yes, ITC can generally be claimed for repairs to a corporate office situated within the factory premises, subject to the following conditions: * Business Purpose: The repair service must be used for business purposes. If the corporate office is used in connection with the business activities (e.g., management, administration, and other corporate functions), ITC can be claimed. * Factory Connection: Since the corporate office is within the factory premises, it is part of the business's operational activities. ITC on repair services would typically be eligible under Section 16 of the CGST Act, as long as the service is used to facil....
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....itate business operations. What if the Corporate Office is at a Separate Site from the Factory? If the corporate office is located at a separate site, ITC on repairs would still be eligible if the corporate office is used for business purposes. The location of the office (whether within or outside the factory premises) is not the determining factor; the nature of the service and its use for business activities are the key considerations. 2. ITC on Services Involved in Tree Cutting for Road Construction and Warehouse Development No, ITC cannot generally be claimed for tree cutting services unless the service is directly related to the business activity. * Tree Cutting for Road Construction: If the tree cutting is part of a project for ....
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....constructing roads that are directly related to the business activity (such as infrastructure development for factory operations or warehouses), ITC might be allowed. However, it depends on whether the road construction project is deemed necessary for the business operations. * Warehouse Development: If the tree cutting is a part of the development of a warehouse that will be used to store goods or services for the business, and this warehouse is directly connected to business operations, then the ITC may be allowed. 3. ITC on Rented Motor Vehicles (Including Two-Wheelers) Used by Salesperson for Marketing Purposes The eligibility of ITC on rented motor vehicles, including two-wheelers, used by salespeople for marketing purposes depends....
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.... on the specific circumstances: * Motor Vehicle Used for Business: Under the GST Act, ITC on motor vehicles (rented or purchased) is generally restricted, but it can be claimed if the vehicle is used for specific business purposes. If the rented vehicle is used for marketing, sales activities, or transportation of goods, ITC could be eligible. * Marketing Purpose: If the vehicle is used primarily for business purposes like marketing, customer interaction, or promotional activities, it is typically allowed. However, if it is used for personal purposes or not for business use, ITC would not be claimable. Key Point: ITC can generally not be claimed for motor vehicles that are used for personal use or for activities like tourism or privat....
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....e commuting. The service should be directly related to the taxable supply to claim ITC. 4. ITC for Laying and Repair of Bitumen Road Within the Factory Premises Yes, ITC can be claimed for the laying and repair of bitumen roads within the factory premises, provided the road is part of the factory's business operations. * Factory Infrastructure: If the road is a part of the infrastructure that supports factory operations (such as transportation of goods or ease of access for workers), it is eligible for ITC under Section 16 of the CGST Act. * Condition: The repair or laying of roads should be directly related to business operations. This can include roads that allow for the transport of raw materials or finished goods within the factor....
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....y, contributing to the factory's productive capacity. Conclusion * Corporate Office Repairs: ITC can be claimed if the repairs are for business purposes, irrespective of whether the office is inside or outside the factory. * Tree Cutting Services: ITC may be allowed for tree cutting services if they are directly related to business activities (e.g., road construction for factory/warehouse development). * Rented Motor Vehicles: ITC can be claimed if the vehicles are used for business purposes, such as marketing or sales activities. * Bitumen Road within Factory: ITC can be claimed if the road is necessary for factory operations (e.g., transportation of goods, employee access). Always ensure the service or goods are used for busines....
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....s purposes as per the CGST Act to claim ITC. Reply By KASTURI SETHI: The Reply: Par Excellent reply by M/s. Yagay and Sun, Sirs as usual. In order to avoid SCN on all the above complicated issues, the department's perspective has also to be taken care of. So also seek guidance from the jurisdictional GST Range Officer or Deputy Commissioner/Assistant Commissioner, In-charge CGST Division. Reply By RaamSrinivasan Kalpathi: The Reply: To add to the views expressed by the experts here-to-fore, to avail ITC, please ensure that the corporate office outside the factory is included as an additional place of business in your GST - RC. Reply By Shilpi Jain: The Reply: * Can we claim ITC for repairs made to a corporat....
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....e office situated within the factory premises? What if the corporate office is located at a separate site from the factory, is ITC still claimable? - Ensure your corporate office when situated outside factory is also a premises mentioned in the registration certificate. Can avail credit in both scenarios if not capitalised in books of account for claiming depreciation. * Is ITC claimable for the service involved in tree cutting for road construction and warehouse development? - if for business purpose can claim ITC. * Can ITC be claimed for a rented motor vehicle (including two-wheelers) used by a salesperson for marketing purposes? - No * Is ITC claimable for the laying and repair of a bitumen road within the factory premises? ....
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....- Same answer as for the 1st point Reply By Ramanathan Seshan: The Reply: Thanks Sethi-sir, Raam-sir, Shilpi-mam Reply By Ramanathan Seshan: The Reply: Thanks-Yagay and Sun-sir<br> Discussion Forum - Knowledge Sharing ....